Equity Group Holdings has announced a historic profit after tax of Sh48.8 billion for the financial year ending December 31, 2024, marking a significant 12% increase from Sh43.7 billion in the previous year.
This impressive growth reflects the bank’s robust financial management strategies and its diversified business model, which has been effectively implemented across various sectors, with substantial contributions coming from its regional operations in multiple countries.
Key Takeaways
- Profit after tax increased by 12% to Sh48.8 billion.
- Profit before tax rose by 17% to Sh60.7 billion.
- Earnings per share (EPS) grew by 11% to Sh12.3.
- Proposed dividend of Sh4.25 per share, with a payout ratio of 34.5%.
- Total deposits reached Sh1.4 trillion, with a customer base of 21.6 million.
Strong Financial Performance
Equity Group’s profit before tax surged by 17% to Sh60.7 billion, showcasing the bank’s resilience in navigating economic challenges. The earnings per share (EPS) also saw an 11% increase, reaching Sh12.3, indicating a solid return for shareholders.
James Mwangi, the Managing Director, emphasized the bank’s financial strength, stating, “Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth.”
Regional Contributions
The bank’s regional operations have become increasingly vital, contributing 49% of total assets and 54% of profit before tax. The Kenyan unit, while still a major player, accounted for 46% of total revenue. Notable growth was observed in various subsidiaries:
- Equity Bank Rwanda: Revenue grew by 36% YoY.
- Equity Bank Tanzania: Revenue increased by 20% YoY.
- Equity Bank DRC: Revenue rose by 9% YoY.
- Equity Bank Uganda: Profit after tax surged by 186% YoY.
Strategic Focus on Growth
Equity Group’s total deposits reached Sh1.4 trillion, with a customer base expanding to 21.6 million. The bank’s liquidity position remains strong, with cash and cash equivalents rising by 19% to Sh345 billion and investment securities increasing to Sh512 billion, resulting in an overall liquidity ratio of 57%.
In a bid to expand its loan book, Equity Bank Kenya has reduced its base lending rate three times in the past six months, aligning with the country’s economic recovery. This strategy aims to lower borrowing costs for businesses and enhance household disposable income, thereby stimulating consumer spending.
Digital Transformation
The bank has also recorded significant growth in digital transactions, reflecting a shift towards technology-driven banking solutions:
- Equity Mobile: Transaction value increased by 67% YoY to Sh3.174 trillion.
- Equity Online (EazzyBiz): Grew by 21% YoY to Sh3.841 trillion.
- Pay With Equity (PWE): Merchant payments rose by 14% to Sh2.149 trillion.
- ATM Transactions: Increased by 21% to Sh481.4 billion.
Commitment to Financial Inclusion
Mwangi reiterated the bank’s commitment to driving positive change through financial inclusion and sustainable growth. He expressed optimism about the future, stating that the Group would continue leveraging its strengths to create long-term value and impact for its shareholders and customers.
Equity Group’s impressive financial results and strategic initiatives position it as a key player in the African banking sector, poised for continued growth and success in the coming years.
